Moving to a Paperless Warehouse

“Going paperless” can mean different things to different companies, but it always involves using technology to digitize information and automate processes. For a metal service center, the decision to move to a paperless warehouse can yield big benefits but should be planned carefully. Start by defining the goals of the project. For example, is the project being driven by a need to support growth, decrease shipping errors, or reduce costs in specific areas? Focus the project on activities that specifically address those goals. To realize the benefits of a paperless warehouse, you don’t necessarily need to eliminate all paper or implement a lot of new technology.

We have worked with steel service centers for over 40 years, and we have noticed that most successful paperless projects share the following characteristics:

1. Employee participation – Including employees throughout the company in the planning and implementation of process changes and new technology ensures a higher level of buy-in, and ultimately a more successful project.
2. Realistic project scope – A paperless project doesn’t necessarily mean that you are removing all paper from the warehouse. However, deciding what the overall scope of the project needs to be to meet your goals is critical. For example, implementing bar code scanners to improve picking accuracy may be more important than eliminating other paperwork if your primary goal is an improvement in inventory accuracy.
3. Executive-level participation – Moving to a paperless warehouse can mean big changes, and having the project overseen by an executive-level sponsor ensures the importance of the project is clear across the entire company and that the project stays on track.

The other thing we have learned? Any service center can remove paper and automate processes in their warehouse. Service centers without a lot of existing technology experience are just as capable of implementing the processes and technology required to go “paperless.”

In defining the goals of your project, consider the following advantages that service centers typically see with a move to a paperless warehouse:

1. Increased accuracy – The implementation of bar code scanners can ensure that the correct products are picked and shipped every time.
2. Access to real-time information – Through the use of bar code scanners and/or computer terminals, employees are updating order and inventory information as items are picked, processed, and shipped.
3. Increased productivity – A paperless warehouse will naturally have more streamlined processes in which employees are prompted to pull the right material, given the next order to work on, and warned if something isn’t being done correctly.

The biggest benefit to a paperless warehouse, however, is almost always an increase in customer satisfaction. Orders are shipped more quickly and accurately, and when a customer has a question, anyone they are talking to will have access to real-time inventory and order information. And, of course, the cost and environmental impact of all of that paper goes away too!